Earlier this week, the Dutch Central Bank warned Dutch banks about the potential risks associated with using digital currencies, such as Bitcoin.
According to the statement, the anonymity associated with these payment options make them an attractive target for criminals.
"The Forum notes that such currencies and the entities trading in such currencies are not subject to any form of supervision,” the statement read. “There is no central issuing party that can be held liable where necessary, and the exchange rate of virtual currencies tends to be volatile.
Additionally, the Dutch Central Bank said that it was concerned over the “liability and volatility” of Bitcoin’s exchange rate.
However, the statement did say that overall, the bank wants to strengthen its digital payments infrastructure.
"The Forum welcomes the banks’ intention to disclose figures on the availability of online and mobile banking facilities via the Dutch Payments Association (Betaalvereniging Nederland) starting in the third quarter 2014,” the statement read.
The U.S. Securities and Exchange Commission also laid down the law against bitcoin this week, when it announced charges against bitcoin marketing site FeedZeBirds and the operator of bitcoin betting site SatoshiDice.
“What’s Hot” is aggregated content. PYMNTS.com claims no responsibility for the accuracy of the content published by the original source.